Ajax Engineering Limited
Ajax Engineering Limited
AJAXENGG
₹14,467/-
Min. Investment
23 /- Shares
IPO Listing Details
Listed On
February 17, 25
Issue Price
₹629.00
Listing Price
₹576.00
Listing Gains
₹-53 (-8.43%)
Min. Investment
₹14,467/-
Apply Dates Range
Feb 10, 25 – Feb 12, 25
Price Range
₹599 – ₹629
Lot Size
23
Issue Size
₹1,269.35Cr
Ajax Engineering Limited
Ajax Engineering Limited, founded in 1992, is a prominent Indian manufacturer of concrete equipment with a diverse product range. The company, originally named ‘Ajax Fiori Engineering (India) Private Limited,’ has four assembling and manufacturing facilities in Karnataka. Ajax Engineering is known for its innovation, customer service, and collaboration with international companies.
| Founded In | July 3, 1992 |
| Industry Type | Manufacture of Concrete Equipment |
| Managing Director | Krishnaswamy Vijay |
| P/E Ratio (post) | 32.1 |
| Price-to-Sales Ratio | — |
| EBITDA | 74.5% |
| Return on Equity | — |
| Revenue Growth | 51.28% |
| Earnings per Share | ₹– |
| Free Cash Flow | — |
| Debt-to-Equity Ratio | ~0.0068 |
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Market Position:
Ajax Engineering is a market leader in the self-loading concrete mixer (SLCM) segment in India1. The company held approximately 77% of the market share in terms of the number of SLCMs sold during the six months ending September 30, 2024. It also held 75%, 77%, and 86% market share in the financial years 2024, 2023, and 2022, respectively18. Approximately 12% of the concrete produced in India is processed using Ajax Engineering’s SLCMs
Manufacturing and Distribution:
Ajax Engineering operates four specialized manufacturing facilities in Karnataka2. The Obadenahalli Facility is one of the world’s largest SLCM manufacturing plants in terms of area28. The company has an extensive distribution network with 51 dealerships across 23 states in India, providing 114 touchpoints, including headquarters, branches, and service centers2. Internationally, Ajax Engineering has expanded its presence with 25 dealers and distributors across South and Southeast Asia, the Middle East, and Africa and has supplied equipment and spare parts to over 15,700 customers2.
Financial Performance:
Ajax Engineering has demonstrated significant revenue and profit growth1. The company’s revenue from operations increased from ₹7632.89 crores in FY22 to ₹17414.03 crores in FY24, representing a 128% increase1. The profit after tax (PAT) also rose from ₹66.208 crore in FY22 to ₹225.149 crore in FY24, a 240% increase1. In the SLCM market, the company’s sales have grown, achieving a CAGR of 45.70% between FY22 and the six months ended September 30, 2024
Shareholding Pattern
| Category | Before IPO % (pre-issue) | After IPO % (post-issue) |
|---|---|---|
| Promoters | 87.88% | 70.24% |
| Promoter’s Group | — | — |
| Public | 12.12% | 29.76% |
| Total | 100.00% | 100% |
Promoter Holding Details
Total Promoter Holding: IPO, based on available data as of February 21, 2025. Post-IPO specifics are estimated due to the Offer for Sale (OFS).
| Promoter | Shares | Equity % |
|---|---|---|
| Krishnaswamy Vijay | 28,601,700 | 25.00% |
| Jacob Hansen Family Trust | 60,063,570 | 52.50% |
| Total (Promoters) | 100,537,600 | 87.88% |
Pros
Market Leadership in SLCMs: Ajax holds a dominant 77% market share in India’s self-loading concrete mixer (SLCM) segment as of September 30, 2024, reflecting its strong competitive position in a growing market.
Robust Financial Growth: Revenue grew at a 51% CAGR from FY22 to FY24 (₹763 Cr to ₹1,741 Cr), with PAT rising at an 84% CAGR (₹66 Cr to ₹225 Cr), showcasing consistent profitability and scalability.
Low Debt Levels: The company maintains a near debt-free balance sheet, with a debt-to-equity ratio of approximately 0.0068 in FY24 (₹6.23 Cr borrowing vs. ₹917.96 Cr net worth), indicating financial stability.
Innovation and R&D: Ajax has developed over 141 equipment variants, including pioneering 3D concrete printers and slip-form pavers, enhancing its technological edge and adaptability to industry trends.
Extensive Dealer Network: With 51 dealerships across 23 Indian states and 25 international distributors, Ajax benefits from a widespread distribution model, supporting sales and after-service reliability.
Cons
Revenue Concentration Risk: SLCMs account for 85% of FY24 revenue (₹1,486 Cr of ₹1,741 Cr), making the company vulnerable to any demand slowdown in this segment.
Seasonal Business Nature: Revenue is back-loaded, with ~35% in H1 and ~60% in H2 annually, exposing it to seasonal disruptions like monsoons or regulatory shifts (e.g., CEV V norms impact in FY26).
Regional Operational Risk: All four manufacturing facilities are in Karnataka, risking production halts from regional issues like natural disasters or local policy changes.
No IPO Proceeds Benefit: The ₹1,269 Cr IPO was a pure Offer for Sale (OFS), meaning no funds flow to the company for growth, limiting direct financial uplift post-listing.
Cyclical Industry Dependence: Tied to infrastructure and construction cycles, Ajax faces potential downturns if government spending or private capex slows, as hinted in the FY25-26 Budget shift to consumption.
Most Ask Questions?
What does Ajax Engineering Limited do?
Ajax Engineering Limited manufactures concrete equipment, specializing in self-loading concrete mixers (SLCMs), batching plants, transit mixers, and innovative products like 3D concrete printers, serving India’s construction and infrastructure sectors.
When did Ajax Engineering go public, and what was the IPO size?
The IPO opened on February 10, 2025, and closed on February 12, 2025, raising ₹1,269.35 Cr through an Offer for Sale of 20,180,446 shares. It listed on BSE and NSE on February 17, 2025.
What is Ajax’s market share in the SLCM segment?
Ajax commands a 77% market share in India’s SLCM market as of H1 FY25, down slightly from 86% in FY22, but it remains the segment leader.
How has Ajax’s financial performance been recently?
In FY24, revenue reached ₹1,741 Cr (up 51% CAGR from FY22), PAT was ₹225 Cr (84% CAGR), and H1 FY25 showed ₹769.98 Cr revenue with ₹101.02 Cr PAT, reflecting strong growth despite seasonal moderation.
What are the risks of investing in Ajax Engineering?
Risks include heavy reliance on SLCMs (85% revenue), seasonal sales fluctuations, regional concentration of facilities in Karnataka, and exposure to construction sector cyclicality.
What is Ajax’s debt-to-equity ratio, and why does it matter?
The debt-to-equity ratio is ~0.0068 (FY24: ₹6.23 Cr debt ÷ ₹917.96 Cr net worth). This low ratio signals financial health, reducing risk but also indicating limited leverage for aggressive expansion.
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer. The author has no business relationship with any company whose stock is mentioned in this article.